Research on outward Foreign Direct Investment (OFDI) has so far been focused on developed countries. However, the significance of emerging and transition economies is increasing. The literature review shows the gap in research on determinants of the EU NMS (European Union New Member States) OFDI, in particular regarding Psychic Distance (PD). The paper motivates theoretically and uses a gravity model to investigate the drivers behind OFDI from NMS. We apply Hausman-Taylor (HT), Poisson Pseudo-Maximum Likelihood (PPML), and Gamma Pseudo-Maximum Likelihood (GPML) estimators. These are the characteristics of the destination country that exert more significant influence than the origin, which raises scepticism about OFDI being stimulated by policy measures in the case of the NMS. A tax-avoiding motive strongly drives their OFDI. We contribute to the literature by showing that PD affects OFDI from the NMS and is an alternative to distance in kilometres, which is traditionally used in gravity models. Socioeconomic and psychic distances are robust alternatives, while other single-dimensional ones (language, industrial, democratic, or religious) are not. Our findings confirm that NMS’s OFDI strongly depends on the Inward Foreign Direct Investment (IFDI) from the counterpart economies.

Background/Objectives: Esketamine-related dissociation is a transient, pharmacologically induced altered state that differs from the trait-like pathological dissociation typically observed in trauma-related conditions. While most studies have quantified these effects using the Clinician-Administered Dissociative States Scale (CADSS), patients' subjective phenomenology and meaning-making remain underexplored. This qualitative exploratory study investigated how patients narrate, interpret, and integrate dissociative experiences occurring during intranasal esketamine treatment for treatment-resistant depression (TRD). Methods: We conducted semi-structured interviews with 36 adults with TRD who were receiving intranasal esketamine in outpatient settings in Northern Italy (2022-2024). Interviews focused on the most salient dissociative experiences during treatment. Transcripts were anonymized and analyzed using inductive thematic analysis. Two researchers coded the data independently; discrepancies were resolved by consensus, and recruitment continued until thematic saturation was reached. Results: Four experiential domains emerged: sensory alteration and perceptual flow (10/36, 27.8%), time suspension and chronological drift (21/36, 58.3%), body and space alteration (20/36, 55.6%), and psychic distance from suffering (30/36, 83.3%). While a minority described transient distress or loss of control, most narratives framed dissociation as neutral or subjectively meaningful, often associated with a temporary reduction in ruminative self-focus and depressive distress. Conclusions: A narrative, phenomenological lens complements quantitative research by clarifying what esketamine-induced dissociation feels like to patients and how it is appraised in context. The findings do not imply a causal or mediating role in antidepressant efficacy. Rather, they suggest that dissociation functions as a transitional subjective state, the clinical relevance of which depends on anticipation, framing, monitoring, and integration. These results support the use of structured psychoeducation, in-session support, and post-session integration within real-world esketamine programs.

This longitudinal single-case research investigates the strategic mechanisms employed by a cultural Multinational Enterprise to mitigate the "Liability of Foreignness" and "Liability of Outsidership" in a market characterized by significant institutional distance. Focusing on HYBE Corporation’s aggressive expansion into the United States between 2021 and 2025, the study aims to challenge traditional gravity models that predict steep "cultural discounting" for creative products and to identify how "soft" assets are transferred across borders. The research utilizes a qualitative methodology, employing pattern matching and data triangulation of corporate financial filings, legal documents, industry reports, and visual documentary evidence to trace the firm's evolution from export-based operations to deep internalization. The results reveal a definitive shift in governance from a financial holding model to operational integration via "HYBE 2.0," demonstrating that HYBE successfully transfers its "upstream" production capabilities - specifically the "K-Pop methodology" - through Wholly Owned Subsidiaries. The case of the global group KATSEYE validates that these Firm-Specific Advantages are not location-bound but can be recombined with local talent. Simultaneously, "downstream" distribution legitimacy is secured through a dual-track inorganic strategy: cross-border Mergers & Acquisitions bridge structural holes to access gatekeeper networks, while a multi-layered Strategic Partnership with Universal Music Group provides logistic scale. Furthermore, the findings demonstrate that the proprietary digital platform, Weverse, serves as a "private institutional environment" that compresses "psychic distance," allowing the MNE to internalize market transactions and capture high-margin "superfan" revenue independent of host-country intermediaries. The study concludes that sustainable success in cultural hegemonies extends the New Internalization Theory and "iBusiness" frameworks, suggesting that firms must enclose global consumers within a digital ecosystem while operationally embedding the means of production locally.

To date, the BRI has prioritized addressing poverty. By promoting local special industries, China’s impoverished counties have begun to leverage the BRI economic opportunities. Through the BRI, China has reframed international poverty norms, localizing them to reinforce legitimacy. However, research on the localization of international norms has focused mainly on the general patterns, while neglecting local specific contexts. To analyze how international poverty reduction norms are localized in impoverished regions under the BRI framework, this study proposes two mechanisms: industrial embedding and identity resilience. The study first argues that the local industrial development models under China’s anti-poverty strategy and the BRI create felicity conditions for the implementation of international anti-poverty norms. Second, rural elites, as promoters of rural characteristic industries, bridge the psychic distance between international projects and impoverished populations through the identity and experience advantages, with new-type professional farmers driving the ‘evolutionary’ localization.

Purpose This paper aims to examine the critical, yet underexplored, role played by trust in reverse knowledge transfer (KT) in the context of cross-border acquisitions undertaken by an emerging economy (Chinese) firm. It specifically explored the antecedents and impact of trust on reverse KT between the acquiring and target firms. Design/methodology/approach This paper involved an empirical investigation based on survey data collected from 103 employees of a Chinese acquiring firm and its British subsidiary. Findings The findings reveal that trust is positively influenced by distributive justice and negatively impacted by the psychic distance between the acquiring and target firms. Importantly, the negative effect of psychic distance on trust was found to diminish in the presence of high perceptions of procedural justice. Trust was found to significantly contribute to reverse KT by acting as a pivotal mechanism. Surprisingly, no direct relationship was found between the absorptive capacity of the acquiring firm and reverse KT. However, trust was found to moderate the relationship between absorptive capacity and reverse KT, highlighting its central role. Originality/value This study is among the first to perform an in-depth analysis of the interplay between trust, justice perceptions and KT in cross-border acquisitions undertaken by emerging economy (Chinese) multinationals. The findings specifically reveal the key mechanisms that facilitate reverse KT and offer practical implications for managers involved in cross-border acquisitions.

Psychic Distance as a Driver in Subsequent International Market Selection: Insights from French Early Internationalizing Firms

The power of digital nativeness: Exploring how millennials mitigate psychic distance in cross-border electronic commerce

Purpose: This study investigates the mechanisms through which born-digital firms and technology companies enter international markets, utilizing the theoretical framework of the Uppsala internationalization model.Method: A qualitative multi-case study methodology was employed, incorporating secondary data sourced from corporate reports, industry news, and academic literature to analyze market entry modes, internationalization process strategies, and motivations for foreign market engagement.Result: The findings indicate that fintech companies such as Xendit and Kredivo adopt more cautious, regulation-driven strategies, often engaging in strategic partnerships and joint ventures. In contrast, digital firms like Gojek and Traveloka are inclined to pursue rapid and high-commitment internationalization through a combination of virtual presence and subsidiary offices. The study underscores the continued significance of psychic distance, as all firms initially expand into Southeast Asian markets that are geographically and culturally proximate.Practical Implications for Economic Growth and Development: The findings provide valuable insights for management regarding strategic decision-making in the internationalization process, highlighting the necessity for entry modes to be tailored to sector-specific contexts. The empirical results further demonstrate that successful internationalization requires a dual strategy that integrates virtual presence with localized approaches.Originality/Value: This study contributes to the existing literature by illustrating how born-digital firms are redefining traditional internationalization pathways, with particular emphasis on the roles of digital infrastructure, regulatory adaptation, and ecosystem integration in their foreign expansion endeavors.

THE INFLUENCE OF CULTURE ON PSYCHIC DISTANCE: A CONCEPTUAL FRAMEWORK

Firms’ internationalization strategies often hinge on managers’ psychic distance perceptions – their assessments of the distance between a firm’s home and foreign countries. Drawing on psychology literatures, this article delves into the cognitive motivational underpinnings of such perceptions, and argues that managers’ distance perceptions need to fit the particular internationalization strategy they pursue. It offers a managerial typology and actionable recommendations that can help develop disciplined approaches to manage the cognitive motivational psychology of distance perceptions in organizations. The typology can be used to embed perception management in organizational processes, to guide manager selection and/ or development.

Purpose In international business research, distance connotes unfamiliarity and misunderstanding. This paper aims to theorize the distance between low-income and higher-income countries, taking as point of departure that low-income countries are generally unimportant business partners of high-income countries, but dependent on the goods, services and markets of many of them. Design/methodology/approach Because low-income countries are dependent upon higher income countries, they have a greater incentive to understand high-income countries than the reverse. Higher income countries not only know little about low-income countries, but among themselves also have varied and often competing interests and concerns. This changes how low-income countries, actors with little influence, make sense of distance. The authors use literature on psychic distance and institutional fields to develop this argument. Findings Rather than managing a series of dyadic distances, low-income countries seek to situate themselves optimally vis-à-vis the range of higher income countries with which they interact. By developing a holistic view of the entire transnational institutional field, they can better navigate and strategically position themselves amongst the more influential high-income countries. Research limitations/implications This work is conceptual, and the authors recommend future research to empirically test their propositions. Social implications This work explains why low-income countries do not necessarily seek aligned interests among higher income counterparts. Originality/value Distance is rarely researched from the perspective of low-income countries. Building on the psychic distance literature, the authors argue that low-income countries have asymmetrically greater motivation and opportunities to overcome distance. This understanding of distance represents a resource for them in conducting business internationally.

Purpose The purpose of this paper is to examine the global sourcing process of Italian craft microbreweries, particularly by identifying the main antecedents leading to the perception of psychic distance. The study also examines how perceived psychic distance affects the selection of intermediaries and the intention to maintain these relationships, with a specific focus on how intermediaries bridge cultural and logistical gaps in international business. Design/methodology/approach The paper employs a qualitative research methodology and adopts a multiple case study approach, focusing on seven small breweries located in central Italy. The study applies thematic analysis to identify and examine key themes and sub-themes related to global sourcing processes, perceived psychic distance and the role of intermediaries. Additionally, the adoption of network theory provides deeper insights into the relationships between breweries, suppliers and intermediaries. Findings Results reveal that perceived psychic distance significantly affects global sourcing decisions, with cultural differences, regulatory barriers and communication challenges emerging as critical factors. Intermediaries play a crucial role in facilitating transactions, building trust and providing logistical support. The study highlights the importance of cultural competence, effective communication strategies and trust-building in mitigating the adverse effects of psychic distance. Research limitations/implications Limitations are primarily related to the geographical origin of the sample, which is limited to regions in central Italy. Despite this, the study provides valuable insights for craft breweries and other small businesses engaged in international trade. Moreover, it emphasizes the critical role of intermediaries in reducing perceived distance and effectively managing global supply chains. Originality/value The study explores a topic largely overlooked in the literature, particularly regarding the analysis of perceived psychic distance, its antecedents and its impact on intermediary selection within the craft beer sector. Additionally, the paper offers valuable guidelines for specific categories of stakeholders (i.e. local intermediaries, foreign suppliers and Italian firms producing raw materials) and provides actionable insights for practitioners, including strategies for supplier selection, quality control and effective communication.

PurposeThis paper presents a comprehensive and integrated review of the literature on the role of psychic distance in shaping inter-organizational relationships, by uncovering the theoretical, methodological, and thematic foundations of this research domain.Design/methodology/approachLeveraging a systematic literature review in combination of text mining techniques using Leximancer, the study identified 62 relevant articles published between 1980 and 2024. The analysis revealed four key areas of focus: (1) interfirm business relationships, (2) relational governance and performance, (3) relationship quality, and (4) relationship violation.FindingsThe findings indicate that this body of research is grounded in well-established theoretical frameworks, with social exchange theory, transaction cost analysis, relational exchange theory, and the resource-based view being the most frequently employed. The literature predominantly emphasizes the role of psychic distance in the formation and maintenance of interfirm business relationships, while the other three areas remain comparatively underexplored.Originality/valueBy offering a more robust framework and a holistic understanding of psychic distance in inter-organizational relationships context, this study paves the way for further theory-driven studies, which is a theoretical contribution towards advancing this research area

Abstract: The Ghost Writer (1979) grapples with the Holocaust as a “limit event” as well as the geographic and psychic distance between the event and twentieth century Jewish American life, doing so by defamiliarizing the historical figure and character of Anne Frank. Within the novel, Roth turns to the tropes of the fantastic, and to science fiction, or sf, in particular—a genre with unique capacity to address those events most resistant to expression through the creation of instances of cognitive novelty, such as the impossible creation of a living Anne Frank doppelganger in Amy Bellette. This new reading of the novel brings its inherent paradox to the forefront, speaking to the mounting force of the Holocaust within Roth’s work and the appeal and limited power of science fiction to represent it.

ABSTRACT In this study, we examined Chinese firms’ cross-border reverse mergers and acquisitions (M&As). From the perspective of internal and external uncertainties, as well as the essence of psychic distance (PD), we established five dimensions of the PD of cross-border reverse M&A: cultural distance, national image, degree of internationalization, top management team (TMT)‘s overseas background, and perceived distance. Using fuzzy-set qualitative comparative analysis (fsQCA), we found that the impact of PD on innovation performance was a combination of multiple factors, showing three types of configurations: external uncertainty dominant, internal uncertainty dominant, and perceived distance dominant. We further explored the interactions between knowledge conditions, such as firm size, industry relevance, and relative knowledge scale, and PD. This study supplements and expands current theories on the internationalization of emerging market enterprises from the perspective of latecomer countries.

PurposeThis study aims to develop and test a framework of the antecedents to and performance outcomes of exporters’ use of different services offered by Internet-based Business-to-Business (I-B2B) platforms.Design/methodology/approachWe test the model based on a unique survey dataset of 350 Chinese exporters who subscribed to Alibaba.com, a major I-B2B platform.FindingsDrawing on the signaling theory, export and I-B2B platform literature, we develop a typology of exporters’ use of services offered by I-B2B platforms. We find that the extent to which firms have cost efficiency advantages, adopt an export diversity strategy, operate under high levels of psychic distance and experience high levels of domestic regulatory uncertainty are all positively related to exporters’ use of I-B2B platform services. The use of those services is either positively or negatively related to export success depending on the services in question. The magnitudes of these performance relationships are contingent on the exporters’ transparency strategies.Originality/valueThis is the first study to examine the antecedents to and consequences of exporters’ use of the services offered by I-B2B platforms.

Temporal and social distances of the estimated duration of R&D projects in the biopharma industry

This research evaluates the liability of foreignness (LOF) in metals and mining companies in Brazil by comparing the financial performance of foreign and local firms. The study also tests if the increase in the psychic distance index (PDI) reduces the performance of foreign companies. We estimated panel data regression models for a sample of 78 companies (29 multinationals in Brazil). Even though the performance differences between mining foreign companies and local ones are not significant, there is evidence that foreign firms face LOF and we confirmed a negative relationship between PDI and the performance of foreign metals and mining companies.

PurposeBuilding on recent developments in the Uppsala model, we first examine the role of business model innovation (BMI) in the internationalization process of firms and then determine to what extent international experience and psychic distance have a moderating effect between BMI and the success of a firm’s international initiatives.Design/methodology/approachWe apply a multiple hierarchical regression model to a sample of 168 firms of two border regions in Italy (Friuli Venezia Giulia) and Austria (Carinthia).FindingsWe find empirical support for the moderating role of both psychic distance and international experience in the relationship between business model innovation and the success of internationalization initiatives.Originality/valueThe paper contributes to the evolutionary perspective of the internationalization process of firms by adding new aspects related to the role of business model innovation to the most re-cent developments of the Uppsala model. From an empirical point of view, the paper contributes to the literature by identifying and testing two boundary conditions that shape the relationship between BMI and international success.

In the realm of international marketing, strategic navigation proves essential as companies confront a myriad of challenges. This thesis starts from complexities surrounding global markets, shedding light on distinct facets such as psychic distance between different markets and self-reference criterion, the standardization versus adaptation dilemma, brand-name power dilution and partner selection challenges. As companies embark on the evolutionary process of entering new markets, they must navigate linguistic, cultural, and competitive disparities. Effectively addressing these challenges demands strategic foresight and adaptability in the ever-evolving global business landscape, marking a crucial aspect of successful global market engagement. Concrete examples, such as Mary Kay Cosmetics’ unique whitening products in Japanese market, IKEA’s adaptive strategies in the Chinese market and Samsung-Tesco’s commitment to overcoming brand-name power dilution in South Korean market, serve to illustrate the practical implications of these challenges.